Going into 2021, only a few people in the world were happier at crypto than Michael Saylor - the chief executive of business intelligence solutions company MicroStrategy. Saylor and MicroStrategy poured almost $1 billion into Bitcoin when the asset’s value was still less than $15,000, and the company’s bet paid off big time as the leading cryptocurrency saw its value skyrocket.
While Bitcoin was posting monster numbers, Saylor kept saying the right things. His recommendations were glowing, and he would preach to anyone who would listen that crypto is the future. He even played a major role in getting Elon Musk and Tesla to make Bitcoin investments of their own, and MicroStrategy organized a seminar for any company that would like to follow in their footsteps and adopt the Bitcoin standard.
But, everyone felt like it was the same old thing - Saylor and MicroStrategy were good to Bitcoin because Bitcoin had been good to them. The thought was that when the market slump comes, he would do what any rational business person would and abandon the asset with his gains - or, at the very least, a part of them - intact.
This hasn’t been the case. Not only has Saylor talked the talk, but he has also walked the walk.
Bitcoin is Good Nonetheless
As everyone would remember, the market downturn began when Tesla announced that they would no longer accept Bitcoin due to its effects on the environment. It would be unfair to pin the entire downturn on Musk and Tesla, but it would also be naive to say that the announcement didn’t start the tidal wave.
Another effect that Tesla’s announcement had was sparking a broader conversation about Bitcoin and its actual environmental effects. While Bitcoin proponents remained staunch in their belief that Bitcoin is a positive force, they also acknowledged the fact that it isn’t perfect. Saylor was one such person.
Saylor was quick to defend Bitcoin, pointing out that steps can be taken to improve its environmental effect. Days later, the CEO announced that he had met with Musk and several top miners in North America to establish the Bitcoin Mining Council.
In his announcement, Saylor explained that the council is comprised of companies like Galaxy Digital, Hut 8, Argos Blockchain, Marathon Digital, Blockcap, and Riot Blockchain. Among other things, the council's objective is to promote transparency in energy use and fast-track crypto-based sustainability initiatives across the world.
At the same time, MicroStrategy bought the dip, investing $10 million to purchase 229 BTC. that acquisition came just five days after the company purchased another 271 BTC.
“MicroStrategy has purchased an additional 229 bitcoins for $10.0 million in cash at an average price of ~$43,663 per #bitcoin. As of 5/18/2021, we #hodl ~92,079 bitcoins acquired for ~$2.251 billion at an average price of ~24,450 per bitcoin,” Saylor said in a tweet announcing the sale.
Fighting the Trolls Everywhere
Beyond doing the work, Saylor has also been vocal about the effect that Tesla’s announcement will have on Bitcoin and its perception.
Speaking at the CoinDesk Consensus conference earlier this year, the CEO explained that one of the reasons for forming the Bitcoin Mining Council was to fight against the hostile anti-crypto narrative that some media outlets have chosen to run with.
In part, Saylor said: “We need to make sure the people that are hostile to Bitcoin and hostile to the crypto industry aren't defining those narratives and defining those models and defining those metrics. In the absence of any good information or any response on our part, they will define those models.”
It’s Not All Been Great
Despite the market dip, Saylor and MicroStrategy have been doing a lot to support Bitcoin. The company announced last month again that it would invest big in the leading cryptocurrency.
In a company statement, MicroStrategy explained that it had facilitated the sale of about $500 million worth of “senior secured notes” through a private offering to foreign buyers. Of the funds raised, MicroStrategy managed to make $488 million in net sales. All of these funds will be used to purchase additional Bitcoin.
However, MicroStrategy’s stock has also suffered a significant blow. The stock slid 12 percent on June 22 alone, hitting an intraday low of $513.20. TradingView data shows that the stock has rallied and is now trading at $650, but it is still way off the highs that it reached in May.
It now seems like MicroStrategy’s stock - like companies such as Coinbase - is trading in tandem with crypto prices. With such a bear market, one would think that Saylor and MicroStrategy would cut their losses and bail on Bitcoin. But, the company has managed to stay on course.